U.S. Demand for Power Tools to Reach $7.2 Billion

August 2016

Demand for power tools in the United States will expand 4.0 percent per annum through 2020 to $7.2 billion. Ongoing strength in construction activity and housing starts will boost demand for power tools used in construction applications, and continued growth in manufacturing output will fuel demand for industrial power tools. Among consumers, those with less interest in do-it-yourself activities will be more likely to outsource jobs to professionals, while many of those undertaking DIY activities will upgrade from more basic power tools to higher priced or more technologically advanced models. These and other trends are presented in “Power Tools,” a new study from The Freedonia Group, a Cleveland-based industry research firm.

The professional market accounted for nearly two-thirds of all power tool sales in 2015, with consumer demand responsible for the remainder. The former will post faster gains through 2020, driven by continued strength in building construction. In addition, ongoing increases in automotive aftermarket service and repair spending, supported by the aging and growing stock of motor vehicles in the United States, will help spur associated professional power tool sales.

Professionals generally use higher-value power tools than consumers due to the improved performance and longer lifespans they offer. According to analyst E. Reta Sober, “professionals tend to use tools on a daily basis, they replace tools, parts and attachments more frequently, bolstering overall spending.” Professionals account for the majority of demand for more expensive, powerful tools such as pneumatic. Consumers, on the other hand, are typically less frequent users of power tools and are more likely to purchase products based on price, which will limit increases in demand in dollar terms.

Power tool shipment gains will trail advances in domestic demand through 2020, reflecting intense competition from lower-cost imports, particularly among more basic items. The largest foreign suppliers of power tools to the U.S. market in 2015 were China, Germany, Mexico and Taiwan, with China supplying more than half of all imports. A sizable number of power tools are sourced from Germany because of their reputation for quality.

“Power Tools” (published 06/2016, 262 pages) is available for $4,900 from The Freedonia Group. For further details contact Corinne Gangloff at (440) 684.9600 or email pr@freedoniagroup.com.